Q1:
Milling machines at a big company are usually down because ofsetups for an average of 15.8 percent of the time in three shifts.If machine downtime is costing the company 178.17 dollars per hour,how much does setup time cost for each machine on an annual basis?Assume five days per week and 52 weeks per year.
Cost = ____________
Q2:
A production system has a burden rate of 346 dollars per hourand a setup time of 4.3 hours. The system also has a lot size of487 parts. If the system must move to a 73 part lot size, how muchmust the setup time be reduced to keep the setup cost per partconstant?
New Setup Time = ____________ hours
Q3:
A local company has machine footprints that total 6,651 squarefeet and 6,165 square feet of value-adding assembly area. If theplant has 28,915 total square feet of product and inventory area,what is the manufacturing-space ratio? Express your answer with twodecimal places.
Ratio = ____________ %
Based on your previous answer, is this a world-classfacility?
__________
Question 4:
The raw material for a product has a cost of 13.4 dollars perunit. The burden rate for the equipment that is doing all themachining operations on the part is 369 dollars per hour, therequired time to finish the part is 8.28 minutes per part, whilethe setup time for the equipment is 1.89 hours. If this part isproduced using lot sizes of 79 units, what percentage of the partcost is due to setup time? If the system must move to a 36 part lotsize, how much must the setup time be reduced to keep the setupcost per part constant?
% Due to Setup = ____________ %
New Setup Time = ____________ hours
Question 5:
A very important company has annual sales of 253 million andan average annual inventory valued at 5 million. With a cost ofgoods sold of 0.92 per sales dollar, what is the inventory turnvalue for the company? What average inventory turn value wouldproduce a turn ratio of 213.
Inventory Turns = ____________
New Average Inventory = ____________
